The 2024 Finance Act brought major changes to the VAT regime applicable to furnished rentals and para-hotels. These changes have direct implications for hotels, Airbnb and other establishments now considered as such.
End of the list of establishments automatically subject to VAT
Until now, only certain establishments were required to charge VAT. Since the 2024 reform, this list has been removed.
Consequences of this change
- Broadening the tax base: Many new players, such as small seasonal rentals, will now have to collect VAT on their services.
- Administrative simplification: For establishments already subject to this reform, it could simplify administrative procedures.
What is the new VAT regime applicable to furnished rentals and para-hotels in 2024?
The new VAT regime applicable in 2024 simplifies and clarifies the rules for furnished rentals and para-hotels. By removing the exhaustive list of establishments subject to VAT, the law establishes a more flexible criterion based on the nature of the services provided. Thus, any rental of less than one month offering at least three specific services (breakfast, cleaning, linen, reception) is now taxable for VAT. Regarding the criterion of reception of customers, it is crucial to keep in mind that a very broad definition of the latter is retained. Indeed, the administrative doctrine (BOI-TVA-CHAMP-10-10-50-20) specifies: “It is characterized even when it is not carried out in a personalized manner. It can be provided in a single location different from the rented premises itself, or through an electronic communication system. It is not required that it be offered on a permanent basis.”
This reform has the effect of extending the VAT base to new players in the sector, such as online platforms, and implies new reporting obligations for them.
Who is affected by the VAT changes in the hotel industry in 2024?
In summary, all establishments offering accommodation services, regardless of their size or legal nature, are potentially affected by this new regime.
What should hotel establishments do about these VAT changes?
Professionals in the sector should keep themselves informed of the practical arrangements for implementing this reform. It is recommended to:
- Contact a VAT professional such as Eurotax: For a personalized analysis of your situation and compliance.
- Consult the official texts: The General Tax Code and the administrative instructions provide details on the methods of application (in particular, the aforementioned BOFiP)
The VAT reform in the accommodation sector marks a turning point. Professionals must adapt to this new context to ensure the compliance of their activities. Eurotax, the European leader in VAT compliance, offers you services adapted to your situation. You can consult our dedicated page or contact us for more information.
